Dubai Islamic Bank net profit up by 17%

Dubai Islamic Bank Group (DIB) announced its financial results for the three months ended on March 31, 2013, registering strong growth across all areas of the bank. In the first three months of 2013, DIB reported a net profit of Dh 301.7 million, compared to AED 258.5 million in the same period of 2012, an increase of 17 per cent, it said in a statement yesterday.. DIB’s total assets in the first quarter of 2013 grew by a substantial 22 per cent to reach Dh 120.6 billion, compared with Dh 98.7 billion as at December 31, 2012. As of March 31, 2013, customer deposits stood at Dh 88.3 billion, compared to Dh 66.7 billion as at December 31, 2012, an increase of 32 per cent. Notably, DIB’s Tier 1 capital ratio strengthened significantly in the first quarter of the year, from 13.9 per cent on December 31, 2012, to 17.7 per cent on March 31, 2013. Similarly, the bank’s total capital adequacy improved from 17.4 per cent on December 31, 2012, to reach 21.2 per cent on March 31, 2013. “DIB’s performance in the first quarter of 2013 reflects the robust health of the UAE economy and the positive outlook for the country’s banking sector,” said Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank. “With our long-term funding requirements secure, DIB is now clearly on a path of sustained growth and will continue to play a leading and active role in the ongoing development of the UAE economy.” Abdulla Al Hamli, Chief Executive Officer of Dubai Islamic Bank, added: “Our performance in the first quarter was notable for simultaneously delivering strong profit growth while significantly improving our capital positions. As we look forward to the remainder of 2013, we will continue to develop and introduce innovative products and services to meet the needs of our large and loyal customer base.” In March 2013, DIB successfully raised a US$1 billion Tier 1 Capital-eligible issuance, with a perpetual (non-call 6) maturity. The issuance, which carried a profit rate of 6.25per cent, represented the best yield ever achieved by a GCC bank on a public Tier 1 transaction and provided a significant boost to the bank’s tier 1 Capital ratio. The issuance was extremely well received by investors across the globe, evidenced by the fact that it was oversubscribed 14 times. In April 2013, the bank also repaid the Dh 3.752 billion deposit, in full and well ahead of contractual maturity, which it received from the Ministry of Finance in 2008 citing robust financial position and strong liquidity as the key drivers for the decision. The quarter also saw DIB winning a number of accolades. The bank won two awards at the Islamic Finance News awards in the 'Corporate Finance Deal of the year' and  'Syndicated Deal of the year' categories. This was followed in March with two awards at the Banker Middle East Product Awards 2013 in the 'Best Sukuk Arranger' and 'Best Islamic Credit Card' categories.